Quick Answer
Complete guide to New York workers' compensation settlements including Section 32 agreements, lump sum settlements, WCB approval, Medicare Set-Asides, and settlement strategies.
New York allows lump sum settlements through Section 32 agreements. Understanding settlement options, WCB approval requirements, Medicare Set-Asides, and negotiation strategies ensures you make informed decisions about resolving your claim.
Section 32 Settlements
What it is: Workers' Compensation Law § 32 allows lump sum settlements
Can settle:
- Future medical benefits
- Indemnity benefits (wage loss)
- SLU awards
- Combination
WCB approval required: All settlements must be approved
Most common: Type of workers' comp settlement in New York
Types of Settlements
Full Settlement
Closes entire case: Resolves all benefits
Lump sum payment: One-time amount
Gives up: All future benefits including medical
Partial Settlement
Resolves some issues: Others remain open
Example: Settle SLU, keep medical open
Flexibility: Tailor to your needs
Medicare Set-Aside (MSA)
What it is: Portion reserved for future Medicare-covered medical expenses
When required: If Medicare beneficiary or will be within 30 months
Reduces net: Money set aside not available to you
CMS approval: May require submission
Complex: Requires specialist
WCB Approval
All settlements: Must be approved by WCB Law Judge
Hearing: Settlement approval hearing
Judge reviews:
- Fairness of amount
- Employee understands terms
- No coercion
Can reject: If not in employee's best interest
Find Out If You Have a Case
Not sure if your employer broke the law or what your claim is worth? Get a free, no-obligation evaluation from an experienced employment attorney.
Valuing Your Claim
Consider:
- SLU award amount
- Temporary benefits owed
- Future medical needs
- Life expectancy
- Trial risk
Calculate maximum: Total potential benefits
Discount: Lump sum worth less than future payments
Negotiation Strategies
Know your leverage: Strong case = higher settlement
Don't accept first offer: Always negotiate
Consider needs: Immediate money vs. ongoing benefits
Attorney essential: Increases settlement value
FAQs
Q: Can I get a lump sum in New York workers' comp? A: Yes, through Section 32 settlement with WCB approval.
Q: How much is my case worth? A: Depends on SLU rating, wages, future medical needs. Attorney can calculate.
Q: Can I settle and keep medical? A: Yes, can do partial settlement keeping medical open.
Q: Do I need WCB approval? A: Yes, all settlements require Law Judge approval.
Q: Should I settle my case? A: Depends on your situation. Consult attorney to evaluate.
Related Topics
- New York Workers' Comp Benefits
- Denied Claims in New York
- Maximum Medical Improvement
- New York Workers' Compensation Overview
Legal Disclaimer
This guide provides general information about New York workers' compensation settlements. Settlement decisions have long-term consequences. Consult a qualified New York workers' compensation attorney before pursuing any settlement.
Last updated: January 5, 2026
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